AT&T to Spend $23 Billion on EchoStar Wireless Spectrum Licenses

AT&T has acquired wireless spectrum licenses from EchoStar for $23 billion, expanding its low- and mid-band coverage networks across the US. The deal covers over 400 markets and fortifies the long-term services agreement between AT&T and EchoStar. AT&T plans to deploy the spectrum as soon as possible to attract more home internet subscribers and meet its growth goals.

AT&T has agreed to purchase wireless spectrum licenses from EchoStar Communications for approximately $23 billion, significantly expanding its low- and mid-band coverage networks across the United States. The deal, announced on July 02, 2025, covers over 400 markets, fortifying the long-term services agreement between the two companies [1].

The acquisition, which includes approximately 30 MHz of nationwide 3.45 GHz mid-band spectrum and about 20 MHz of nationwide 600 MHz low-band spectrum, aims to bolster AT&T's telecommunications infrastructure. This move is crucial for AT&T as it seeks to expand its network capacity, especially in the context of escalating internet usage and the saturated wireless market [2].

AT&T CEO John Stankey highlighted the strategic importance of the deal, stating that it "bolsters and expands" the company's spectrum portfolio while enhancing customers' 5G wireless and home internet experience in even more markets. The deal is expected to close in mid-2026, with AT&T financing the spectrum purchase transaction with cash on hand and incremental borrowings [2].

Post-acquisition, EchoStar will collaborate with AT&T on Boost Mobile services and future spectrum leasing agreements. This strategic partnership will enable EchoStar to operate as a hybrid mobile network operator, providing wireless services under the Boost Mobile brand. AT&T will be the primary network services partner to EchoStar as it continues to serve wireless customers [2].

The acquisition is part of AT&T's broader strategy to maintain long-term leadership in advanced, high-performance connectivity, across 5G and fiber. The enhanced spectrum will allow AT&T to continue to be a leader in wireless through enhanced 5G coverage, even greater reliability, and faster speeds. When combined with AT&T's fiber internet network, which is the largest and fastest growing in the U.S., these enhancements position AT&T to meet critical connectivity needs for consumers, businesses, and first responders today and well into the future [2].

This deal is expected to drive improved and capital-efficient long-term growth for AT&T by accelerating and expanding its opportunity to offer advanced connectivity across the country. AT&T expects this transaction to support strong and sustained growth in its high-value base of converged customers that subscribe to both its home internet and 5G wireless services [2].

References:
[1] https://www.ainvest.com/news/strikes-23-billion-deal-echostar-expand-wireless-spectrum-competitive-telecom-turf-war-2508/
[2] https://dallasinnovates.com/dallas-based-att-to-pay-23b-for-wireless-spectrum-licenses-from-echostar/